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ImageWare Systems Issues Third Quarter 2012 Corporate Update
Management to Hold Conference Call Today at 5:00 P.M. ET
By: Marketwired .
Nov. 14, 2012 04:05 PM
SAN DIEGO, CA -- (Marketwire) -- 11/14/12 -- ImageWare Systems, Inc. (OTCQB: IWSY) ("ImageWare" or "IWS"), a leader in multimodal biometric security solutions, has issued a corporate update to highlight the company's progress during the third quarter ended September 30, 2012.
Key Milestones and Events
Progress Overview and Outlook
Since ImageWare's last update in August, the company has achieved multiple milestones in product and corporate development.
In September, ImageWare introduced CloudID, its next-generation, cloud-ready suite of identity solutions. The heart of this product suite is the re-envisioned and re-engineered BE 2.0, which accelerates the development and deployment of enterprise-class biometric identity solutions for hundreds of millions of data sets. It also provides a level of modularity, interoperability and massive scalability, from mobile devices to large-scale databases, that was previously unavailable in the biometrics and credentialing marketplace.
Also, during the third quarter, ImageWare's patented, multimodal BE 2.0 became the first agnostic multi-biometric management solution certified on Fujitsu's NuVola Private Cloud Platform for the enterprise. BE 2.0 enhances critical security functions, allowing rapid deployment of biometric solutions across the NuVola Private Cloud Platform. Fujitsu plans to launch this platform worldwide in the fourth quarter of 2012.
In conjunction with this certification, Fujitsu and ImageWare have entered into a three year software license agreement to incorporate the BE 2.0 on the NuVola Private Cloud Platform, whereby ImageWare will be paid on a revenue sharing basis. The company will also be working with Fujitsu at the Microsoft Partner Solutions Center to demonstrate several paying, proof of concept pilot projects that will showcase Fujitsu's cloud solution running IWS's CloudID products and services. The intent is to operate CloudID on Fujitsu's public cloud as a software as a service (SaaS) offering. ImageWare expects this agreement will increase its revenues while providing greater stability and forward-looking visibility.
"At the end of last year, we set a goal to establish a leadership position in biometric-based identity management for the cloud," said Jim Miller, chairman and CEO of ImageWare. "The release of our BE 2.0 earlier this year, followed by the CloudID product suite, has clearly paved the way toward achieving this goal. Our proven experience in the government sector is translating perfectly into the commercial market, and we are gaining traction with customer adoption as demonstrated by our Fujitsu license agreement."
"Working with a global partner and leading IT innovator like Fujitsu and their NuVola Private Cloud allows ImageWare to quickly enter the private cloud arena," continued Miller. "The worldwide deployment of this platform represents a significant growth opportunity for ImageWare and also demonstrates our multi-biometric security expertise."
During the third quarter, the company also advanced the development of its biometric-secured mobile transaction technology, building upon the wireless push technology and related patents it acquired from VOCEL earlier in the year. Integrating wireless push technology with ImageWare's biometric solutions provides the missing security link facing a growing number of enterprises and government agencies using mobile platforms to transact business or interact with their users. The solution is applicable for healthcare, law enforcement, banking and retail, or any organization requiring highly-reliable and flexible identity verification of their mobile users. The company plans to release the first demonstration models of this mobile technology to key potential corporate users in early December.
In addition to product development, ImageWare has been preparing for a major international deployment as the exclusive provider of biometric identity management for a prime contractor installing cargo scanning security at the Republic of Ecuador's major seaports. The initial deployment is currently scheduled to begin in the early part of 2013 at the Port of Guayaquil, the country's main seaport that handles a majority of its imports and exports. ImageWare expects to receive a fee for every port worker receiving credentials, as well as an annual management and maintenance fee, based on a percentage of the initial credentialing cost per worker. Depending upon the number of enrollees, the company expects the contract value to exceed $3.0 million over its seven year term.
"The high-end biometric secure credentialing solution we are providing for Ecuador is the same technology being deployed for the Los Angeles World Airports, which we announced earlier this year," noted Miller. "In fact, we can easily replicate this platform for virtually any port system that needs transportation worker identification cards in order to comply with the SAFE Port Act. Not only are our solutions easily deployable, for ImageWare they generally represent gross margins above 70% as well as a recurring revenue stream. Our unique patented technology has the potential to provide us strong, steady revenue growth, along with excellent forward-looking visibility."
Miller added: "Historically, our revenues have been lumpy and difficult to predict as a result of our dependence upon larger government projects. Although we will continue to pursue government contracts, we believe the proactive steps we have taken to operate in the commercial and consumer markets will begin to provide us with monthly recurring revenue throughout 2013, driven primarily from our Cloud, SaaS and mobile offerings."
On September 10, the company enhanced its corporate governance with the addition of Charles Crocker to its board of directors. Crocker is chairman and CEO of Crocker Capital, a private investment firm with a particular interest in companies with patented mobile technology in the health care and financial markets. Prior to Crocker Capital, he served as chairman of the board and CEO of BEI Technologies, a NASDAQ-listed, diversified technology company which he founded. The appointment of Crocker follows two other important board additions: John Cronin, managing director and Chairman of ipCG, the world's largest intellectual property strategy consulting firm and Neal Goldman, president and director of Goldman Capital Management and ImageWare's largest shareholder.
"Charlie's extensive experience in leading and advising numerous public technology companies is highly complementary to our board and an invaluable resource to management," concluded Miller. "We have now assembled a very knowledgeable and accomplished board that will help guide us toward our goal of becoming the industry standard in biometric identity management."
Date: Wednesday, November 14, 2012
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 1-949-574-3860.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through December 14, 2012.
Toll-free replay number: 1-877-870-5176
About ImageWare Systems, Inc.
ImageWare Systems, Inc. (OTCQB: IWSY) is a leading developer of identity management solutions, providing biometric, secure credential and law enforcement technologies. Scalable for worldwide deployment, ImageWare's biometric product line includes a multi-biometric engine that is hardware and algorithm independent, enabling the enrollment and management of unlimited population sizes. ImageWare's identification products are used to manage and issue secure credentials, including national IDs, passports, driver's licenses, smart cards and access control credentials. ImageWare's digital booking products provide law enforcement with integrated mug shot, fingerprint livescan and investigative capabilities. ImageWare is headquartered in San Diego, CA, with offices in Portland, OR, Washington, D.C., and Ottawa, Ontario. For more information on ImageWare Systems, visit www.iwsinc.com.
Forward Looking Statements
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if", "should" and "will" and similar expressions as they relate to ImageWare Systems, Inc. ("ImageWare") are intended to identify such forward-looking statements. ImageWare may from time to time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. For a discussion of such risks and uncertainties, see "Risk Factors" in ImageWare's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, its quarterly reports on Form 10-Q for the quarter ended June 30, 2012, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
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